Justin Sun says the SEC case will have minimal impact on the Huobi exchange

According to the entrepreneur, the outflow of funds from the platform was observed only within one day after the claim’s filing

27.03.2023 - 08:25

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3 min

What’s new? TRON blockchain founder and Huobi crypto exchange CEO Justin Sun said that the US Securities and Exchange Commission (SEC) charges against his projects did not cause serious consequences. For example, over one day after the claim’s filing, the net outflow of funds from Huobi was “only $30 million,” while a few days ago the exchange recorded a net inflow of deposits of $20 million. Sun added that this is a minor loss for the platform.

火币个人感觉是到底了，昨天SEC疯狂输出，平台净出金才3000万美元（前些日子每天净入金2000万美元，SEC一波积累五年的输出，白干一天半吧），今天黑子又是一波疯狂输出，搞了一波提币运动，竟然净入金700万。黑子该黑的也算是黑完了，安心交易吧。黑无可黑，跌无可跌，只能暴涨了。 — 孙宇晨🌞🇬🇩🇩🇲🔥 (@sunyuchentron) March 24, 2023

What else did Sun write? As for crypto activity, the head of Huobi said that the exchange saw a “wave of crazy output and a wave of coin withdrawals” amid a net deposit of $7 million.

According to Sun, the key metrics for Huobi’s growth are the daily inflow, the number of transactions, the volume of transactions, and liquidity. He also noted that the native token TRON (TRX) is used by 2 million investors every day, and the project team burns 7 billion TRX per year.

Sun stressed that Huobi never encourages users to use high leverage for short or long positions because the price fluctuations of digital currencies are extremely strong.

以上的话不作为平台立场，只是我的一些个人看法：平台从来不鼓励用户高杠杆或长期使用杠杆做空或者做多，数字货币波动极为剧烈，这种策略长期以为一定是100%失去全部本金，这是数学策略本身决定的。做对方向财富自由，做错方向维权平台的路也是走不下去，因为平台的模式是手续费模式，不与用户对赌。 — 孙宇晨🌞🇬🇩🇩🇲🔥 (@sunyuchentron) March 24, 2023

What is known about the SEC case against Sun? On March 22, the commission accused Sun and related companies the TRON Foundation, the BitTorrent Foundation, and BitTorrent (Rainberry) of selling and issuing unregistered securities, fraud, and market manipulation.

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The SEC also sued celebrities Lindsay Lohan, Jake Paul, Soulja Boy, Lil Yachty, Ne-Yo, Akon, and Michele Mason for illegal advertising of TRX and BTT. In this, most of them settled the charges.

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